The major brand is ramping up for a global wave of EVs.
"Following the successful launches of Mercedes-EQ models in recent months, we are taking the next step: To outline the plan for our future production setup," said Jorg Burzer, Member of the Board of Management of Mercedes-Benz. The brand has indeed launched several new electrified models, including the Mercedes-Benz EQS and EQB. These models have and will continue to serve as the cornerstones of early electrification efforts at Mercedes-Benz.
Now, the brand has turned to future-proofing. It's looking to ensure that it can continue to produce electric models at the rate necessitated by demand while also doing so as sustainably as it can. That means new factories, new tooling, and more employees. This is an expansion, make no mistake. four plants will kick off the production of new models in three new Mercedes-Benz categories.
Mercedes refers to those categories as "Top End Luxury, Core Luxury, and Entry Luxury" Those are rather self-explanatory and can best be described by the models they represent. The EQS could be considered a Top End Luxury model, and so on down the line. Mercedes also has two new electric platforms that it will use, called the MB.EA and AMG.EA. Both of those will underpin future EV models starting this decade.
For now, only one plant, out of Sindelfingen, Germany, will be dedicated to producing models in the Top End Luxury category. Those models will ride on AMG's new EV architecture, the AMG.EA platform. The other Bremen, Germany, and Kecskemet, Hungary plants will make models that will sit on the Mercedes-Benz electric architecture (MB.EA). Those models will largely be more consumer-focused, mass-produced items.
In addition to these production plans, the company is investing $2.1 billion USD into these European production sites. This falls under the "tools and employees" category we mentioned above, helping Mercedes-Benz prepare its plants for the future of electric vehicle production.
Notably, Mercedes' production of electric vehicles in the United States is set to pick up in the coming years as well. Mercedes says that its Tuscaloosa, Alabama plant will start production on the new EQS SUV and EQE SUV later this year.
Right now, the Tuscaloosa plant also produces more conventional gas-powered models like the GLE and GLS. Mercedes will also continue to scale up production in its Bibb County plant near Tuscaloosa, which started producing batteries earlier this year.